laytech has acquired the entire issued share capital of Ash Gaming, one of the leading developers of interactive gambling and betting games, with more than 30 licensees. Total cash consideration is of up to us$ 35.8 million, comprising initial consideration of us$ 24.1 million and deferred contingent consideration of up to us$ 11.6 million.
Playtech believes that there are significant combined benefits to be gained from the acquisition, including greater revenue opportunities and enhanced economics across the value chain. In addition, Ash Gaming has an experienced and well respected senior team who will further strengthen Playtech's content capabilities and depth of management.
Ash Gaming was founded in 2002 and is now one of the online gaming industry's leading games content developers focused on the provision of games for online betting and gambling operators, predominantly developing slot-based games. The company employs more than 40 staff, of which the majority are game developers.
Ash Gaming delivers sophisticated slot machines, fixed odds games and content in the area of virtual races. It has won a number of industry accolades and was Highly Commended for 'Innovation in Slot Production' in 2010 by E-Gaming Review. Its leading game titles include Amazon Wild and Madness House of Fun and are distributed through platforms as well as direct to certain operators, principally under revenue share agreements.
Established in 2006, Geneity is an online lottery and sportsbook software provider based in the London suburb of Chiswick and Playtech is set to pay an initial cash consideration of us$ 17.1 million subject to working capital adjustments with us$ 6.2 milion of this due to be held in escrow for 30 months. London-listed Playtech stated that a further us$ 6.2 milion will be payable ‘subject to certain agreed deliverables to be provided by Geneity’.
“Sportsbook is often the prime entry point for companies into online gaming,” said Mor Weizer, CEO for Playtech. “Over the past year the pace of change in the sportsbook segment led us to believe that we needed to acquire experienced developers to immediately give us a market-leading capability. Geneity will deliver a range of features key to Playtech's sportsbook such as in-play betting and a broader range of sports on which to wager.”
Geneity currently has a deal to provide its sportsbook software to Gala Coral Group through to the end of the year while its lottery solution is being utilised by the Health Lottery. Other clients include Betfair and Ladbrokes with the firm reporting unaudited revenues for the year to the end of March of us$ 3.5 million alongside profits before tax of us$ 1.2 million.
“Geneity is delighted to be joining the Playtech family, the synergies between the respective companies and products are very strong,” said Will Slater, Managing Director for Geneity. “At Geneity we've created a highly advanced sportsbetting platform with integrated in-play algorithms, per channel pricing and a scalable and modular architecture. It's very exciting to be able to offer our sportsbetting platform to a wider audience alongside Playtech's existing best-of-breed products.”